Dividend Declared treatment in financial statement
Dividend declared means declared by the shareholders in annual general meeting. And AGM happens after the financial statement gets approved by board & gets audited by auditor And we prepare financial statement on 31st March Then how dividend Declared can be accounted in that financial year ?
Dividend is recognized when it is finalized by all the sharesholders in AGM as per As9 Revenue recognition concept
AS 9 is for revenue recognition and not for the accounting of dividends being paid.
Dividends declared on AGM (Say in September 2019) will be accounted as dividend in financial year 2019-20. The concept of provision for dividend no longer exists. Dividend is accounted only when approved - by BOD in case of interim dividends and by Shareholders in AGM in case of Final dividend.